For several years now we’ve been enjoying low-interest rates under 5% but we always knew it was eventually coming for interest rates were rising. A few months ago,Federal Reserve chair Janet Yellen held a committee to get rid of thrift rates eventually by a quarter percentage point. This would go from 0% to .25%.

It’s one of those things that you know eventually will come but you’re not exactly sure when. If rates do rise it would be good news for our money savers and bad news for debtors. However, financial advisers are telling people not to do anything extreme just yet. Here is what you can do if you’re watching the market closely and would like to stay ahead of the game.

Consider fixing your existing mortgage rate. If you have a floating interest rate which could get more expensive over the years, it might be time to move that to a fixed rate mortgage. Your rates may initially go up but might not go up as high as they would if you had a floating or adjustable rate mortgage.

Consider paying off your debt immediately. Higher interest rates means that debt would already increase in payments could spike on home equity loans, credit card debt and other loans with variable interest rates. It would be a good idea to pay down those debts as quickly as possible.

Consider a bank that rewards deposits. As the Fed rate increases, banks should be expected to raise rates on mortgages and credit cards faster than savings rates. Large banks have a lot of deposits of a have little incentive to try to attract new money. Try to transfer money to smaller banks and online institutions that are eager to attract new deposits and new clients. However, this is not the time to buy a five-year certificate of deposit. Don’t make any large sudden moves but makes small, wise moves that put you in a better position should the Fed rate increase. [Source]

Consider buying a home now. This is really the best time to buy before rates start to rise. I don’t suspect we will see any major jumps in 2017 but they probably won’t drop. We’ve been enjoying these rates for some time now.

Get on the bandwagon and so something with that loan; either readjust, buy or consolidate. Call us today if you’re interested in learning more or would like to find out how much home you can afford. You might be surprised considering the rate. Most people can afford a larger home now than ever before.

What our clients say

Jessica Lowery

I love working with Karen and Frank. They are honest, not pushy, and have your best interest in mind. They...

2015-05-12T20:51:52+00:00

I love working with Karen and Frank. They are honest, not pushy, and have your best interest in mind. They will also make you laugh! :) Love these two!!!

http://sunsetbeachandbeyond.com/testimonials/jessica-lowery/

Steve & Jean DeVito

“The Bakers treated us like family during our whirlwind weekend of looking at houses. Prior to our on-site visit to...

2015-03-16T20:17:46+00:00

“The Bakers treated us like family during our whirlwind weekend of looking at houses. Prior to our on-site visit to Sunset Beach they created a portal and populated it with properties that met our ever-evolving criteria. By time we arrived we had a good feel for what we could afford and what was available that met our criteria. The Bakers, especially Karen, were able to make sense of what we thought we were looking for and eventually matched us with a house that we ended up purchasing — Karen called it the “This is it” house and she was right. We are loving our 2nd home and appreciate how painless Karen and Frank made the process. All the paperwork was done seamlessly and quickly and the closing went off without a hitch. The Bakers do not believe in the hard sell — they gave us the knowledge we needed and the guidance we needed to make our dream a reality.”

http://sunsetbeachandbeyond.com/testimonials/steve-jean-devito/

Matt & Amy Carver

Amy and I have bought and sold four properties in the past twelve years. Both of you are the best...

2015-03-16T20:18:22+00:00

Amy and I have bought and sold four properties in the past twelve years. Both of you are the best realtors we have ever dealt with. Amy and I both felt we could trust you to look out for our interest. The level of service you provided was outstanding, from taking the trash out, helping the buyer with inspecting the irrigation system, dealing with our tenants, always being there if we needed to ask a question, providing constant updates on the market and always keeping us informed on the sale of our house. I think your next venture should be training other realtors, because both of you have mastered the art of providing excellent service. I will be sure to recommend the Frank and Karen team to anybody looking for a trust worthy, knowledgeable and top performing realtor. It was a pleasure working with both of you.”

http://sunsetbeachandbeyond.com/testimonials/matt-amy-carver/

Ernie & Carol G.

“Karen & Frank Baker are the best. They are very knowledgeable with the area & showed us many homes. When...

2015-03-16T20:18:50+00:00

“Karen & Frank Baker are the best. They are very knowledgeable with the area & showed us many homes. When we made up our minds which one we wanted, they got us the best deal on it. We were very satisfided with them. After the purchased was made & we moved in, they were still there to answer any questions or problems that we might of had. Like I said, they are the BEST.”

http://sunsetbeachandbeyond.com/testimonials/ernie-carol-g/

Dave & Rose

“Thanks again for all the time you spent with us, As overwhelming as it was, you two made it fun”

2015-03-16T20:19:23+00:00

“Thanks again for all the time you spent with us, As overwhelming as it was, you two made it fun”